Wall Street Ends Higher, Setting Records Ahead of Christmas Holiday

New York, NY – U.S. stocks closed higher on Wednesday, setting new records as Wall Street prepared for the Christmas holiday. The Dow Jones Industrial Average gained 0.6%, or nearly 300 points, finishing at a historic height. The S&P 500 rose 0.3%, marking its second consecutive record closing, while the Nasdaq Composite increased by nearly 0.2%.

The markets were buoyed by expectations of a potential “Santa Claus” rally, a phenomenon characterized by stock gains during the last five trading days of December and the first two of January. This year’s surge follows five straight days of gains among major indexes, despite disappointing economic data impacting expectations for interest rate cuts from the Federal Reserve.

According to a first estimate from the Commerce Department, U.S. GDP growth was much stronger than anticipated, largely driven by robust consumer spending. However, this has led traders to lower forecasts for a rate cut in January, although expectations for two cuts by the end of next year remain.

Investor sentiment was further evidenced by rising gold and silver prices, which reached all-time highs on Wednesday. Gold surged to over $4,500 an ounce before settling slightly lower, while silver also hit a record high.

Wall Street’s advance was supported by strong performances from companies like Nike, Walt Disney, and Goldman Sachs, with the majority of the Dow’s 30 components closing in positive territory. Markets will be closed on Thursday for Christmas and will reopen on Friday.

Notable tech developments included a drop in shares of Intel following a report that Nvidia had halted a test of Intel’s semiconductor process. As trading continues, investors are keeping an eye on upcoming economic indicators and Federal Reserve meeting minutes set for release shortly after the holiday.